Standard Chartered will now handle arranging duties for Samsung Card's auto loan ABS, due next month, according to sources. The Korean consumer finance entity originally selected The Royal Bank of Scotland to handle the offering, after being furnished with a $300 million loan facility in July.

However, RBS decided to drop the transaction for commercial reasons. It is believed the bank had concerns over possible increases to the cost of capital for its conduit - which the deal would have been sold into - in the case of a liquidity draw.

Samsung Card is currently enveloped in the controversy surrounding the Samsung Group's ownership of subsidiaries through affiliated financial companies. Under Korean law, a financial subsidiary of a Chaebol conglomerate, which Samsung Card is, must receive regulatory approval if it is to acquire more than 5% of a non-financial subsidiary. Despite this, Samsung Card has upped its holding to 25.6% in Samsung Everland - reckoned to be Samsung's holding company. Reports in the Korean press suggest the government will force Samsung Card to sell its excess holding in Everland, as well as other affiliates.

Elsewhere, China Construction Bank's long awaited mortgage-backed offering would be launched as soon as it completes its IPO, which will begin trading in Hong Kong on Oct. 27. The IPO for the currently state-owned Chinese bank could raise $7.7 billion, which would make it the world's largest listing by a Chinese company.

With most of China Construction Bank's senior officials on roadshows for its IPO, it is no surprise the Rmb10 billion ($1.23 billion) MBS offering, arranged by Standard Chartered, has been set aside for the time being. However, as the country's first mortgage-backed offering - and one of the two pilot securitization schemes approved by the State Council - it is of great significance in its own right.

Standard Chartered will kick off roadshows for its $110 million partially funded synthetic CLO this week. Deutsche Bank Securities is arranging the deal for the Hong Kong and London-listed bank, with the notes linked to a $1.5 billion reference portfolio. Roadshows will take place in Asia, Europe and the Middle East over the next two weeks. A source reported that with no obvious comparable offerings, price guidance would only emerge after discussions with investors.

In Malaysia, diversified business group Widetech has launched a M$50 million ($13.3 million) consumer finance-backed ABCP conduit that will finance the expansion of one of its subsidiaries, Goldwealth Capital, which it acquired in 2003. Amanah Short Deposits is arranging the deal, with Mulpha Capital Markets on board as financial advisor.

Revenues generated by Goldwealth from its contract to supply Koperasi Konsumer Malaysia with electrical appliances and furniture will collateralize the commercial paper, issued through the GW Capital vehicle. Koperasi, a worker cooperative made up of civil servants, will pay for the goods over the next four years under a deferred payment scheme. The cooperative will then sell the goods on to members under a monthly installment scheme, with direct deductions taken from their salaries Rating Agency Malaysia assigned a P2' rating to the transaction.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

http://www.asreport.com http://www.sourcemedia.com

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.